Why do traders fail?

drcha said:
This is an interesting view. As an American, I agree that there are many people who don't want to do anything difficult. I am speaking generally here, and the following does not apply to everyone. However, on the whole, we would rather watch something stupid on TV than read a scholarly book. We would rather go to a sporting event and shout and scream for 4 hours than visit a museum or take a class to learn something. We would rather take pills or insulin than eat healthy food and exercise. We would rather get a degree in political science and then complain about the economy than enter a scientific/technical program and learn something useful that can further our career. We would rather complain about how the Chinese and the Indians are starting to eat our lunch than admit that they deserve to eat it because they are willing to work much harder than we are.

I have many friends and acquaintances who know that I am financially comfortable and that trading is a big part of that. People often ask me to show them what to do. I am completely willing to do this, so I begin by giving them a list of 4 or 5 books that I consider essential. As far as I know, nobody who has asked for my help has read even one of those books. They actually think they are going to be able to learn how to do this in a couple of spare hours on their weekend.

Well, we can't blame our genes because in America, we all have vastly different genetic profiles. My guess is that the rise of permissiveness in childrearing may be responsible for the prevalence of laziness. Everyone tries to make things easy and pleasant for their kids. They don't want them to have to do anything that is not enjoyable or that they are not immediately good at. Naturally, this stems from loving people wanting their children to feel good about themselves, and there is nothing wrong with that. But they are missing the fact that accomplishment is also a powerful tool for promoting self-esteem. Instead of taking the easy road all the time, children need some challenges (while you are still there to guide them) so they may learn to feel good about themselves after they get over a hurdle, build confidence, and have the chops to handle difficult tasks when they are grown up and you are long gone. But this is not happening any more, and it appears to me that a lot of Americans expect life to be easy. I find this really odd.
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Just an addendum to this excellent post. Trading has been promoted by many scammers as a get-rich-quick scheme. It looks as easy as videogaming to many people. Scams like Wizetrade are specifically marketed as it being that easy, if not easier. So no wonder if some people come here with the expectation that trading is something that can be learned in a few weekends at most. They've seen the infomercials telling them as much.
 
kut2k2 said:
Just an addendum to this excellent post. Trading has been promoted by many scammers as a get-rich-quick scheme. It looks as easy as videogaming to many people. Scams like Wizetrade are specifically marketed as it being that easy, if not easier. So no wonder if some people come here with the expectation that trading is something that can be learned in a few weekends at most. They've seen the infomercials telling them as much.
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Well, if Barbra Streisand can do it . . .
 
kut2k2 said:
Just an addendum to this excellent post. Trading has been promoted by many scammers as a get-rich-quick scheme. It looks as easy as videogaming to many people. Scams like Wizetrade are specifically marketed as it being that easy, if not easier. So no wonder if some people come here with the expectation that trading is something that can be learned in a few weekends at most. They've seen the infomercials telling them as much.
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Well, that's what they call marketing. Tell the people what they want to hear. Doesn't have to be the reality, and mostly is indeed NOT like reality. An because most people think they are smarter than the average human, this marketing works. Till the account is wiped out.
To me the market tells me how smart, or stupid, I am. I receive daily updates on the level of my intelligence through my account statements. That's the hard truth and cannot be denied. But the truth can be pleasant too.
 
Here is an interesting article:

Six in Ten Mom-and-Pop Currency Traders Lose Money Each Quarter

http://blogs.wsj.com/moneybeat/2015/01/16/six-in-ten-retail-forex-traders-lose-money-each-quarter/



According to the article, 99% of small traders lose annual.

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The article also points out profitable traders open an account with a firm that have an extreme higher minimum deposit requirement, while small traders open an account with a firm that have an extreme lower minimum deposit requirement.




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In other word, poor people shop at walmart, while rich people shop at wholefood

poor = losers


This is not only fx, but to futures, options, and stocks


 
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